The President reviewed his travel over the past three months, which included attending the FAI CIAM Plenary meeting. He spoke to the CIAM Bureau of AMA’s position on FPVs and UAVs. Currently the Bureau is gathering information from various countries on how they address FPV/UAV and it is expected the CIAM will put out guidelines governing them in the near future.

4. Executive Vice President's Report

The EVP reviewed his travel over the past three months, meeting with members and primarily discussing FAA, FPV, and the new privacy issues in the news.

Worked with committee members on defining written duties/responsibilities for AVPs; expect to have final AVP document for July 2013 EC meeting.

On March 7 attended a statewide meeting of Colorado county commissioners. Through the efforts of the Jefco Aeromod’lers, Scott Rousch (Chatfield State Park Mgr.), and Ken Brink (CO State Parks & Wildlife Mgr.), AMA membership is required of all people flying at the site in Chatfield State Park. The agreement also provides for Jefco to control the site. AMA awards were presented to John Singletary (Commissioners Chairman) and Scott Rousch.

CFO Search Committee - continue to review possible applicants. If any Council member has contacts with anyone with bookkeeping, investment and auditing experience, please forward it to the committee chairman.

Bob Reynolds presented the Audit Report:
B. Reynolds thanked the Council for the opportunity to continue to work with the AMA. He reviewed the Management Letter and Audited Financial Statement. Highlights included:

• The AMA had a positive financial year; the measures put in place in 2012 were very effective.
• Timeliness of financial statements-after being pointed out as deficient, steps have been taken to improve this.
• Commented on disbursement activity using PayPal; this activity will now be independently reviewed on a periodic basis.
• Reviewed the required recording and documentation for stocks donations and acknowledgement of gifts. He noted that how a gift is acknowledged to the donor, determines how it can be used.
• Suggested doing a cost allocation analysis to ensure AMA is capturing all the costs associated with its unrelated business income.
• Reynolds noted there was a delay in starting the audit on time this year; suggested that management establish a process for preparing for the audit all year.
• AMA’s investment portfolio is strong and healthy.
• Model Aviation advertising increased, as did its subscriptions.
• Operating expenses declined almost 800k.
• Showed a $1.1 million turnaround to the good, in deficiency of revenue over expenses from operations. This is due to managing operations, cost containment, etc.

MOTION I: Moved by G. Fitch (EVP) and seconded by J. Wallen (IX) to approve the Audit as presented.MOTION passed unanimously.

Comments on Audit – all the issues have been resolved except one. HQ is developing a strategy to have in place to eliminate potential tax liability re: Unrelated Business Income (UBI).

Scale Documentation service – the ED reviewed what this documentation service encompassed. He noted that in the small-business world, in the most simplistic terms, one way of determining the value of a business is generally one year gross sales plus inventory. The ED recommends that this is not a good business opportunity for the AMA. Concern was expressed relative to copyright issues with the documentation of previews. Council was in consensus to pass on the opportunity to acquire as artifacts as well as the scale documentation service.

Plans service – plans are from 1971-1996 and come from or have been in various magazines. There are copyright issues with the plans service. AMA had no way to determine annual sales and costs, so there was no way to determine the value of the business. The ED recommends that this is not a good business opportunity for the AMA; not even an opportunity as a collection as it is unlikely we can resolve all of the copyright issues. Council was in consensus to pass on the business opportunity.

New Education trailer – Council viewed pictures of the trailer; M. Benson did most of the graphic design/work. It got great reviews on various social media sites while at the event in Florida and is currently at the SEFF event.

AMA Expo – AMA has owned the show for 10 years. Since its’ move to the Ontario Convention Center the Expo has never realized a profit and in 2012 the Academy assumed a 21k deficit on the show. The 2013 Expo generated a 12k profit. This was due in part to hard work by the team that managed the Expo, L. Knowlton being able to renegotiate the contract, and changes made in the advertising plans.

The ED reported that the Wings over Indiana video done last year in conjunction with NASA and the Indianapolis Children’s Museum has been nominated for three Emmy Awards.

J. Gaffney presented a brief history of the National Aeronautic Association and explained what they do - Records, Awards and Working with Air Sport in America/FAI.

Records – certifying aviation records in the US since 1905 (the only organization in America that can do this); have approximately 8,000 records in their database; have certified records in every aviation/aerospace category; record classifications include absolute records and subclass records and can be U.S. or World Records. The Records Database is on the NAA website.

Awards – NAA administers 18 different awards with the Collier Trophy being the most important aviation award in the world; they also administer FAI Awards. NAA consistently calls upon Board Members and Air Sport Organizations to both submit nominations (or ideas) for awards and to serve on Selection Panels.

NAA is a small organization that works very closely with its’ Corporate Partners, Air Sports Organizations, Members, Affiliates, and Aero Clubs.

The Academy of Model Aeronautics is classified as an Air Sport Organization (ASO). The Air Sport/NAA partnerships are administrative, financial, and professional in nature. NAA collects dues from all the ASOs and forwards them to FAI as part of NAA’s annual dues; 100% of these dues are forwarded to the FAI and any excess is returned to the ASOs. Gaffney reported that FAI dues have been paid for all ASOs as of April 26, 2013. NAA provides guidance and support to ASOs on regulatory and governmental issues as needed; administers sporting licenses and records; assigns members designated by the ASOs to FAI Commissions; administers FAI awards program for air sports in the U.S. and consistently brings air sports into NAA events, selection committees and outreach. NAA supports the ASOs and the work they do for air sports in the United States.

7. Committee Reports

Foundation (Appendix IV)
There has been a slight delay in the final approval of the foundation paperwork by the IRS due to sequestration, however the committee continues to move forward. The rollout will include a marketing campaign with the bills/ballots and the membership card. New donor programs will be announced with the foundation that will include donor incentives/levels; Heritage Society; Board of Directors; Contributor Newsletter; and Foundation website are other items being worked on and developed.

A strategy for contacting potential board members is being developed. The board will be comprised of individuals with varying background and skills. Initially it is expected the board would consist of four-five individuals. Wallen noted there will be term limits associated with the BOD. Council should pass along the names of individuals they feel may qualify as candidates; when submitting names, the Council member should explain why they recommend the individual.

The committee is investigating offering a special membership card to donors, giving them the opportunity to highlight that they are part of the foundation. They are working with the Membership and Marketing departments on this.

Stewardship/cultivation will be increased. Launching the foundation during the renewal period is expected, as 70% of donations are realized during this time. It was noted that contributors appreciate a note of thanks from their district representatives in addition to the one sent from the ED. This goes a long way in generating good will. It was suggested that the committee look into providing an auto-debit function for donations

Argenio stated that we cannot forget those individuals who have donated to AMA in past; possibly use them as an introduction to the foundation. Software is needed that will keep track of donors, participation levels, history, etc. The ED reported that HQ currently has all that data but it will be a challenge to migrate that data into the foundation database.

Publications (Appendix V)
C. Budreau reported on the digital efforts since the July 2012 launch. ModelAviation.com traffic has increased to 50k impressions/month; with 15,629 unique individuals on the site spending an average of 12 minutes 14 seconds. Overall it is growing, but there is room for growth. They want all digital efforts to promote the hobby, AMA, and the magazine.

Alternative distribution channels for the tablet app are being investigated. It was reported that adults 55+ is the fastest growing segment of tablet users. The number of paid tablet app downloads is growing but has yet to meet expectations. It was suggested that the renewal form include an option to purchase the tablet app. When asked about permitting members to opt out of print and only receive the tablet app, Kurek noted he must be concerned with advertising revenue. At this time circulation of the tablet app has yet to reach the level where it is attractive as an advertising medium, but they are working on a different advertising structure for the tablet. The tablet app is built on Adobe; they will investigate using a web-based app as well. Looking ahead, the department will continue the same path to engage the readers and promote the magazine, train staff, and migrate ModelAviation.com to a more robust server. With regard to the library they will improve the interface and hosting, add MA issues back to 1936, and expand the library with additional publications such as Park Pilot. Will continue to streamline production of the app, address android bugs, and evaluate new distribution options including free/discounted member subscriptions to the app.

Comments from Council: would Quad Graphics offer the magazine as a Cloud service; offer an opt-out-of-print option in lieu of tablet app; evaluate what a decline in the number of print copies would do to the overall costs with the printer. Kurek noted they will report back at the July EC meeting.

J. Soto, Publications Committee chairman thanked R. Kurek and his staff for their hard work and keeping up to speed with the ever-changing technology in an effort to better serve the membership.

AMS/WDD Discussion
D. Mathewson reported that HQ has spent much time looking into what we need to do with our AMS system; it has turned into a huge project. HQ is currently using a system called GTI, which was built for AMA in 1993 and is outdated. As we moved along as an organization, new needs were discovered so GTI was customized internally. It got to the point where so much customizing was done the vendor stopped supporting it. The GTI program is written in a language called Unify, which is outdated. We have a system that doesn’t connect with the outside world, doesn’t talk to our members, and doesn’t allow us to interface with our members to any great extent. Over the last 16 months HQ, has spent hundreds of hours researching this internally and doing discovery work. The internal team that has been part of putting this together has been S. Grubbs, E. Bachman, B. Sullivan, C. Budreau, and M. Benson.

Representatives from WDD were introduced; they have been around for 20 years as a software developer. J. Berg, product manager with WDD noted there will be a challenge with taking the system the staff is used to and integrating newer technology and techniques but not have it be cumbersome to the users. They are very conscious of not losing any of the current data during the migration. They have projected a one-year timeline to build a new AMS. The development methodology was explained; AMA must have a plan on where they want to go, and the plan will continue to evolve as technology and AMA’s plans change. They can develop a process to respond to changes. WDD starts with a technology roadmap, they have a development methodology that focuses everything together (testing, security, and development) and then they constantly iterate and improve. This will allow AMA to more quickly get to market with the functions and features the members and the organization needs to operate. When they have developed the roadmap Council will have a clear document on what it will enable the organization to do. Off of the roadmap they can develop the critical functions/features. The biggest thing will be backing up the old system, moving it to a new architecture that will allow AMA to do what it needs to do moving into the future. WDD will meet with HQ every two weeks; they review the previous weeks’ deliverables and finalize what will be done the next two weeks. They have a very aggressive timeline but the only way they can meet that, will be if HQ makes sure they have the information they need to get the job done. They will be around to support the project longterm.

WDD has done work on the analysis already as far as understanding the technology roadmap for this project. Milestones have been set for some two-week targets. Each of the two-week deliverables will be tested; security tested, validated and turned over production ready; it would be up to HQ to decide if they want to roll it out. AMA will own 100% of the intellectual property and will not be tied to WDD.

The ED reported that yesterday he was prepared to recommend moving forward with WDD; he has complete confidence in them. They have done a good job and spent a lot of time in the discovery phase. We need to go forward with the single user sign-on security module and HQ recommends using WDD to build that module; it can be used across any platform. Before proclaiming to fully go with WDD, HQ would like to further research another company’s offer. Mathewson reported that the module and additional iterations was budgeted for (2013) and they would like to move forward with that. There was no Council opposition to the ED moving forward with the single user sign-on security module. Council can expect a conference call in the next few weeks with a recommendation on going forward with the entire project.

Marketing/Membership (Appendix VI)
G. Fitch reported that the hobby shop program has been revised and HQ has done a great job bringing new hobby shops online. Over the past couple of months, surveys have been conducted through MCA; this will be reported on later. He noted that the current contract associated with the AMA Expo ends in 2015 and Council needs to begin planning for the future of the Expo. The committee discussed this and recommends the show be continued in Southern California. Input from Council was solicited. Discussion included-committee should look at the costs involved with other venues; consider possibly moving the Expo every couple of years to a new location if a good short-term contract could be negotiated; some on Council were in favor of multiple AMA shows in different cities; 20,000 members are within a day’s drive of the CA show and there seems to be a younger demographic that attends the CA show. The committee and Marketing department will investigate different venues and negotiate costs looking past 2015.

MCA Survey – They looked at age and longevity demographics and randomly selected 25k members to invite to participate; additional invitations to participate were posted on the AMA website, in AMA Today and on various websites to allow people outside of the organization to respond. Monthly pulse readership surveys will be sent to get opinions on a number of items. Participation rates were good for members/former members; 37% of people who got the email opened it and of those that opened it, 51% clicked through to start the survey. B. Elk reported these are great statistics for email and the members are engaged and care about participating in survey. Did not get much non-member participation in the first round so they worked with another publication and did a survey blast to their readership; this is currently underway. To date there are 13,000 survey starts and about a 74% completion rate. Council viewed the demographics and responses received so far. B. Elk reported that the numbers show AMA has a highly loyal membership. The scores from the non-member modelers were lower, and this could be a result of them not being aware of all that AMA offers. From here, MCA will do further analysis of the non-member results and complete the PP subscriber survey and get that sent, as well as help staff prepare surveys so they can take over running them on a regular basis. A final report is expected to be presented at the July EC meeting. The end result will show places that have not been marketed to or when talking of non-members, where their interests lay, so AMA can develop more direct marketing promotions. The results should help identify where AMA can improve on member-retention and show the desires of what we are not providing to the non-member/lapsed member.

Non-dues Revenue
Nance reported that the MCA survey results showed there was interest in affinity programs. HQ was contacted by Nationwide Insurance (they offer affinity programs for non-profits) and they are currently preparing a partnership program for AMA. HQ will review the proposal and make a recommendation to Council in the next three-four weeks.

Mathewson reported that it was in the 2013 Program of Work to develop more non-dues revenue through affinity programs. AMA does have a credit card program right now; that contract will end next year. HQ will be actively pursuing another bank and new program.

Award description in Membership Manual (Appendix VII)
B. Underwood reviewed the results of last years’ works relative to bylaws/standing rules and membership manual. The Nats description was taken out of the standing rules. Council will need to determine what, if any, changes they want to the Nats operations. Following review by AMA’s legal counsel, two other items (Code of Conduct and Whistleblower Policy) were taken out of the standing rules and will be listed in the documents file on the AMA website. Bob has been working with A. Argenio on bylaws changes he recommended and they should have recommendations for Council at the July EC meeting. Changes/corrections to the award listing were presented for Council review. Underwood reported that the Outstanding Service Award for Couples, the HOPE Award and the Legion of Champions were established without any Council knowledge or input.

MOTION II: Moved by L. Tougas (X) and seconded by M. Radcliff (III) to change the Award Description based on the submittal of the working group, and to retire the John A. Zaic Memorial Award, the HOPE Award and the Meritorious Service Award.MOTION passed unanimously.

These changes are effective as of April 27, 2013.

Bob Underwood was thanked for his extensive work associated with this project.

Safety (Appendix VIII)
T. Jesky reviewed the committee's recommended changes for the 2014 Safety Code and the AMA Radio Control Large Model Airplane Program.

MOTION III: Moved by T. Jesky (VII) and seconded by E. Williams (II) to approve the Academy of Model Aeronautics National Model Aircraft Safety Code and the AMA Radio Control Large Model Airplane Program as modified April 27, 2013. Modifications: Safety Code item A.2.(e) Change the word Aircraft to Airplane; add item B.9.(c) Fly using assistance of autopilot or stabilization system only in accordance with the procedures outlined in AMA Document 560.MOTION passed unanimously.

Leader Member
R. Kennedy explained the online application process for becoming a Leader Member. When a member applies online, the application comes directly to Rusty who makes sure the application is correct and the references are current AMA members. He then forwards it to the respective VP for approval/disapproval. If approved he sends the application to HQ and they send the LM package.

Duties/Responsibilities for VPs/AVPs
G. Fitch reported there was a brief meeting Friday to discuss the duties/responsibilities for AVPs. The committee took a four-page document and reduced it to just over two pages. He will make the changes and hopes to have it to Council for discussion prior to the July meeting.

Online Sanction (Appendix IX)
M. Mosbrooker reported the committee was tasked with determining whether HQ could hold off on charging a credit card until a sanction was approved. He reported very few sanctions are declined but would look into it.

He is disappointed in the number of sanctions that have been submitted online (35-38%); it was hoped to have more CDs taking advantage of it by now. Numerous emails have been sent to the CDs informing them of the online ability. L. Tougas and M. Radcliff have both used the system and reported that it worked well.

The President reported he and a couple of others met with M. Kranitz during the Toledo Show; Kranitz would still like AMA to take advantage of his RC Flightdeck program. It was Council’s decision that they are not interested in this program or continuing dialogue with Mr. Kranitz. Headquarters will contact Mr. Kranitz and inform him of Councils’ decision.

Flying Site Grant (Appendix X)
Mosbrooker reported there were 40 requests with a total amount of adjusted grant requests of $48,463.07. The total budget for 2012-2013 was $31,281. The committee recommended the top ranked 24, clubs receive the full grant and the 25th ranked club receive the remaining budgeted amount.

It was noted that the criteria for ranking applications is vague. Following discussion, the President appointed an ad hoc committee to develop more precise criteria for the committee to use in ranking the applications. The committee chair is M. Mosbrooker; L. Tougas will also serve on that committee.

MOTION IV: Move by M. Mosbrooker (XI) and seconded by M. Johnston (VIII) to accept the recommendation of the Flying Site Improvement Grant Committee as modified April 27, 2013. Modification: page 1 of report, change 29 clubs, to 24 clubs.MOTION passed: 12-Y (Dist. II VP was out of the room during voting)

National Model Aviation Day Update
T. Jesky reported that a webpage is being created which will include a sign-up sheet for clubs; full page ads will run in the June and July issues of the magazine and emails were sent to Leader Members. To date there are 31 clubs that have signed up; the goal is to get 100. This is a wonderful opportunity for positive public relations for the AMA on a national level. It was clarified that the Wounded Warrior Project will be the recipient of the proceeds for the 2013 event; next year (if the event continues) there will be a different recipient of the proceeds. HQ will create a link from AMA’s homepage to the National Model Aviation Day webpage.

R. Hanson reported that HQ has applied to the Indiana governor’s office for a state Model Aviation Day Proclamation; should know results in 4-6 weeks. A template will be placed on the National Model Aviation Day webpage for clubs to use in requesting the same from their respective state governors.

FAA/Government Relations (Appendix XI)
Hanson is now a full-time employee of the Academy and in addition has taken on the PR portion of that position. AMA has a subscription to a firm called Focus, which is a PR press release channel on the web; AMA is allowed four press releases a month and Hanson expects to fill those with positive, informative, and newsworthy items. Hanson informed Council that J. Sizemore is no longer in the Unmanned Aircraft Program office in the FAA.

A recent phone call with the FAA Unmanned Aircraft Program office uncovered how the FAA would consider, evaluate, and assess applications for CBO organization. Hanson noted three items AMA might need to review: its methodology for enforcement of adherence to the safety code and its related documents, its methodology for training its members, and the requirement that a CBO is located in the majority of the contiguous United States. Hanson expressed concern that the FAA was not sure they wanted to do an MOU to enact the provisions of section 336 of the public law. Rich has asked for a face-to-face meeting to further discuss the MOU however no date has been scheduled.

There may be an opportunity for the AMA and FAA to discuss small UAS. AMA has been contacted by various entities for help in managing that activity. Council viewed a video that was made of a meeting at HQ with AMA, Ball State University, and the Delaware County Dept. of Emergency Management. The ED reported that the UAS group needs benefits different from what we offer our members. Four different groups have been identified - the FPV user that is part of 550/560; the element of the educational aspect with opportunities with the Journalism Department at Ball State; an educational opportunity with the Civil Air Patrol, and potentially the casual commercial operator. Mathewson noted AMA does not want to get fully involved with commercial operation, but we can provide these entities and others with guidelines on operating safely within the national airspace. We could offer things such as our ability to administrate a national program; ability to provide credentials, recordkeeping, coordination, marketing, advocacy, and coverage when they are doing their activity. Many of our members want to help as a volunteer resource using this platform; they want to help in search and rescue; accident reconstruction, etc. Mathewson expanded on how AMA could be a resource for education, communications, publications, safety rules and responsibilities, and other benefits. He said we have the infrastructure in place to provide this, could implement a program very cost-effectively and it would not be a huge investment. The benefits for AMA would be the opportunity for AMA to grow its membership, to be the leader in this industry, and provide the safety guidelines that build our credibility and relationships with that community as well as with the FAA. A workgroup was created that will discuss opportunities; the results will be reported to Council.

Comments included: AMA could become a resource to the FAA; Council should be cautious of FAA’s perception of the AMA if they decide to get involved with the UAS group; this would create risks for AMA but also creates opportunities; the under 4.2-pound category of UASs is AMA’s biggest opportunity to work with the FAA and help manage that aspect; the ED does not see AMA getting involved in the heavy commercial domestic UAS arena. No one on Council was opposed to moving forward with investigating opportunities. The next step is to talk with the community and recognized experts, brainstorm ideas, and explore opportunities.

Hanson reviewed the status of a few of the state legislation bills; groups from Texas, Oregon, New Hampshire, Illinois, Missouri, New Jersey, New York, North Dakota, and others came forward and asked how they could help. Some testified before committee hearings, others wrote letters and talked to legislators.

Out-of-Budget Expense
This proposal was offered so Council would have a better accounting of the budgetary impact decisions made, would have on items they approve.

MOTION V: Moved by L. Tougas (X) and seconded by T. Jesky (VII) that for all financial decisions made by the Executive Council over $1,000.00, the Executive Council will be prefaced with the following information prior to a vote being taken:

• The financial impact of the vote with supporting details
• Whether or not the funds for the motion are covered by the current budget

If the funds are not covered by the current budget the following information will be provided prior to a vote being taken:

• The source of already approved funds that the current motion’s funding will come from and the effect it will have on the program losing the funds

OR

• If the funds will be taken from the contingency budget, what the current balance of the contingency budget is and the effect the current motion will have on it

OR

• If the funds will be added to the budget, what the current total of out-of-budget expenses approved by the EC year to date is, and the effect this motion will have on the total out of budget expenses for the current and future fiscal year

MOTION passed unanimously.

Jim Deck Address to Council
Mr. Deck (President of LSF) expressed his displeasure that the Soaring portion of the 2013 Nats was scheduled during the Fourth of July holiday; he also wanted assurance that for 2014, Soaring would be scheduled during its ‘regular timeframe.’ The ED reported that when Council approved giving IRCHA any weekend in August 2013 to run their event, this disrupted the timeline window. That window will be back in 2014, but that does not necessarily mean Soaring, or any other discipline, will get the same dates. It was pointed out that the Nats Planning Committee develops the schedule (which is adopted by Council), and that each Special Interest Group (SIG) has the opportunity to have a representative attend that meeting. Mr. Deck was informed that the schedule for 2014 has not yet been approved and LSF should have representation during the Nats Planning Meeting to express their desires. It should be understood that the Nats do not control all the events that take place on the national flying site during the year.